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Feb 23, 2012

Strauss Group Goes On Offensive Against Potential Consumer Boycott

The Strauss Group has seen the threat of a consumer boycott and has changed tactics. They started off defending themselves, claiming mainly that they don't set the prices but the retail shop does. Now, Strauss has decided to counter the looming boycott with an offensive of its own.

In a message released on Youtube by the CEO of Strauss Israel, Tzion Balas backtracked and claimed that while it is correct that a number of Strauss products are cheaper in the United States, including the Pesek Zman chocolate bar that kicked off the issue, he says that number is very limited and most Strauss products are cheaper in Israel.

Watch the video if you can. I think they really need a new marketing guy. Most people probably stopped listening after the first two sentences. He is totally boring and shows little emotion. he should have saved his speech for a news clip and made the youtube video into a cute presentation showing the actual prices on products he claims are cheaper in Israel. As a matter of fact, if he was going to say most products are cheaper in Israel, which he did, he should have at least mentioned one or two by name.

Here is the video by Tzion Balas, CEO of Strauss Israel:





According to Globes, Balas also has said that Strauss will not lower its prices. Strauss already lowered its prices on many products and will not lower any more. Furthermore, Balas added that they have to keep the prices at these levels in order to maintain its operations - if they lower prices they would have to cut many employees, and they are now taking on a lot of contract workers as regular employees - in other words, consider your actions as a boycott might mean many low income laborers losing their jobs. Balas also says that the lower prices on some items is an attempt to grow their export market - this contradicts their earlier statements that they have nothing to do with setting the prices..

3 comments:

  1. whoops

    "if they lower prices they would have to cut many employees, and they are now taking on a lot of contract workers as regular employees "

    spare me

    ReplyDelete
  2. It's not gonna work. Consumers are pissed.

    ReplyDelete

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